I'm an associate editor at Forbes, part of the team responsible for our signature issues: The Forbes 400, Global Billionaires and America's Richest Families. As a writer, I cover these wealthy business builders as well as other entrepreneurs. Before Forbes, I also reported on entrepreneurs for Inc. magazine, and attended Syracuse University's S.I. Newhouse School of Public Communications.

A Soda CEO Pops Off With Wacky Comments About His Company's Stale Business

Unsteady lies the head that wears a crown, especially so, it appears, for Nick A. Caporella, the soda king of south Florida.

Caporella made a series of brash and downright odd comments in a company press release–one that I admit to initially missing on Friday–explaining why his Ft. Lauderdale-based National Beverage Corp. fizzled in the quarter ended June 30. Here’s an example:

“There can be no allowable regrets in business or fumbles on the field (deck) of Endeavor — none . . . (no one even knows how to practice them),” quipped Caporella.

And a second example, followed by a third…

“Good soft drinks are to the human race what sunshine is to a panic!”

“As I repeat from our Annual Report, look at our track record over the past twenty years – no mental degradation has occurred! …Certainly, we have come to know – precious rainbows usually require both rain and sunshine! TeamTeam National’s results were obtained by diligence and untiring determination. We are Disappointed – Yes; Contrite – Certainly; Resilient – Absolutely . . .” a heartfelt Caporella concluded.

What exactly prompted this soda chief to pop off? He watched profit fall 16% to $12 million on a 6% decrease in sales to $172 million.

Normally, a press release is a meticulously groomed and edited document, and careful attention is paid toward toward making the CEO sound smart and ensuring he doesn’t say too much. In particular, public companies face a delicate situation: any stray comma or poorly expressed sentiment can move the stock. Sure enough, National Beverage sank 8% on Friday. While the dismal results on the balance sheet undoubtedly played a role, Caporella’s off-the-cuff remarks couldn’t have helped either.

Caporella’s National Beverage is the fifth largest drink manufacturer in America, and Caporella does reference many of the same problems mentioned by his (much!) larger rivals, like Coca-ColaCoca-Cola, PepsiCoPepsiCo, Dr Pepper Snapple and Monster BeverageMonster Beverage: a tough economy weighing on consumer spending and a resistance to new pricing tactics. “Maybe everyone learned an invaluable lesson — ‘No instant fix for a distraught consumer!” Caporella says in the release.

To be sure, Caporella often makes remarks that can seem unorthodox. Just a few months earlier, in another press release recapping a recently completed fiscal year, he said, “One can read our regulatory filings to learn more of why and how this great year came about. Instead, I would like to share some feelings.” More to the point, he concluded, “This was a year that witnessed consumer trends/mood severely change their preferences. It is very tempting to write about all the challenges; from corn costs to horrific explosions — to fear-induced bomb or tornado catastrophes, but why do that? Instead, we count our blessings for results that are far better than our industry peers anticipated.”

He might spout off now and then, but Caporella is indisputably successful. National Beverage shares have nearly doubled since 2008, and its market capitalization is nearing the 10-digit mark: currently $754 million. An impressive position for Caporella, who started by acquiring Shasta Beverages from Sara Lee Corp. in 1985 and went on to expand the brand portfolio to include Faygo, Ritz and Crystal Bay.

But when competing in a landscape that includes giants like ($170 billion market cap) Coke and ($122 billion) Pepsi, National Beverage’s business can seem like small potatoes. It does sharply rival Coke and Pepsi in one aspect: the way it compensates its chief. Indeed, National Beverage rewarded Caporella last year with a total compensation package of $6.62 million, a sum as rich as a king’s ransom when compared to Coke and Pepsi. By way of contrast, Coke’s Muhtar Kent most recently received $6 million in compensation, and Pepsi’s Indra Nooyi received $17.4 million.

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Comments

We live in a “wacky” world if truthfulness, an unwillingness to make excuses, and passion are written off simply as, “Odd”. I think Jane Wells at CNBC ended her article much more accurately when she said,

“Come to think of it, wouldn’t it be nice if more CEOs were this honest? ”

Regardless, National Beverage is one of the top performing stocks over the past 5, 10, and 20 year holding period. A slew of exiting new products are coming out in 2014. On top of this, there is optionality in this stock that is not currently factored in by the market – It is severely undervalued, in my opinion. Readers can get my take by reading my latest article at Seeking Alpha under “ FIZZ” here: goo.gl/npKjau

The quote made was actually, “Good soft drinks are to the human race what sunshine is to a PICNIC”.. Mr. Caporella consistently refers to his soft drinks as a fun, flavorful experience for NBC consumers, so his comparison to a picnic follows suit.

What is odd is your position on his honesty and accountability! In a time of misled stockholders, big business failings and an oddly inflated stock market, Mr. Caporella appears to be honest and willing to take ownership of the issues that have impacted his shareholders and his business.

I appreciate National Beverage’s approach, and I absolutely appreciate Nick Caporella’s willingness to speak up without blame or ridicule and remind us all, that sometimes you DO need to weather the downs, as well as the ups; especially when his stock has been so consistently secure. If only more CEO’s felt such responsibility to their consumer and their owners, we would have a much more even playing field, and quite honestly, a much more interesting, honest and, even, ‘colorful’ business experience.

Kudos to Nick Caporella for reminding us of good, old fashioned responsibility and the courage to make it fun to read at the same time!